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Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?


  • Lehmann, Etienne

    () (University of Paris 2 - Panthéon-Assas)

  • Taugourdeau, Emmanuelle

    () (University of Paris 1 - Panthéon-Sorbonne)


We show that the domestic output increases with a foreign country's structural reform and decreases with foreign country’s fiscal policy. Hence, when governments act non-cooperatively, they implement too low structural reforms and too much fiscal policies.

Suggested Citation

  • Lehmann, Etienne & Taugourdeau, Emmanuelle, 2004. "Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 46-52.
  • Handle: RePEc:ris:integr:0265

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    References listed on IDEAS

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    7. Gianluigi Pelloni & Wolfgang Polasek, "undated". "Intersectoral Labour Reallocation and Employment Volatility: A Bayesian Analysis using a VAR-GARCH-M model," Discussion Papers 99/4, Department of Economics, University of York.
    8. Gianluigi Pelloni & Wolfgang Polasek, 2000. "Macroeconomic Effects Of Sectoral Shocks In Us, Uk And Germany: A Bvar-Garch-M Approach," Computing in Economics and Finance 2000 253, Society for Computational Economics.
    9. Davis, Steven J, 1987. "Allocative Disturbances and Specific Capital in Real Business Cycle Theories," American Economic Review, American Economic Association, vol. 77(2), pages 326-332, May.
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    More about this item


    Coordination failures; Aggregate supply; Aggregate demand; Structural reforms;

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods


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